Tesla hits $25B in Q2 revenue, but margins decrease amid price cuts

Tesla hits $25B in Q2 revenue, but margins decrease amid price cuts

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2023-07-20 | 07:49

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Tesla hits $25B in Q2 revenue, but margins decrease amid price cuts

Tesla reported Wednesday net income of $2.7 billion in the second quarter, up 20 percent from the same period last year as once again, the company’s EV price cuts dug into profits. The automaker has repeatedly reduced the cost of its four EV models in the United States, Mexico, Europe and China. The move helped boost sales in the first half of the year, with Tesla hitting record Q2 deliveries of 466,140 units. But it’s also taken chunks out of Tesla’s normally healthy automotive margins.

For the second time this year, Tesla’s gross margins decreased to 18.2 percent, down from 25 percent in Q2 2022 and down from 19.3 percent last quarter. 

Tesla matched Wall Street revenue estimates of around $25 billion for the quarter, which is nearly 50 percent higher than year-ago sales of $16.9 billion. Most of the revenue came from Tesla’s automotive revenue, which hit $21.3 billion in Q2. That number includes $282 million from federal tax incentives. 

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